All High Yield articles – Page 3
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White papersFixed Income Outlook – Be selective on emerging market debt
Given the recent strong performance for emerging market bonds, we have tempered our optimism about the potential for further spread tightening among the higher-rated segments. We remain, however, constructive on the asset class as a whole and still see attractive opportunities among lower-rated sovereign bonds, as well as selected local currency bonds.
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White papersFixed Income Outlook – Corporate bonds still a bright spot
We expect corporate bonds to deliver positive returns in the coming quarters, primarily due to the attractive yields. With money market rates becoming less attractive as interest rate cuts loom, further supporting inflows into corporate bonds look likely.
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White papersFixed income: our medium-term playbook
Macro conditions, fundamentals and sentiment are positive but investors would be wrong to count on a goldilocks scenario. In the Q2 issue of Alphorum, we focus on navigating sovereign and credit markets ahead of an easing cycle and looming maturity wall, paying special attention to capitalising on volatility to lock-in attractive duration and idiosyncratic situations to capture spreads.
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White papersFixed Income Perspectives Q2 2024
Quarterly macro and market insights from Capital Group’s fixed income team
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White papersEmerging Market Debt Outlook: Opportunities Amid Uncertainty
2024 is already shaping up to be a year of considerable uncertainty. The first quarter has given us a taste of that with a sharp reversal of expectations for the US economy and the monetary policy plan of the Federal Reserve.
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White papersSDG Engagement High Yield Credit: 2023 Annual Report
In the four years since the launch of the SDG Engagement High Yield Credit strategy, the investment and engagement team has built strong relationships with companies all around the world, in sectors that are key to achieving the SDGs.
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White papers2024 2Q outlook: Adapting to high tide
Originally written and recorded by a Jamaican trio in 1967, “The Tide Is High” made its biggest splash with the now-classic 1980 cover version that topped the charts around the world. Thematically simple, the song’s familiar chorus acknowledges challenging circumstances while expressing the narrator’s resilience (“I’m holding on”). It’s an apt soundtrack for today’s investors as they acclimate to a high-tide environment of their own.
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White papersPrivate Credit Allocations vs Leveraged Loans and High Yield
The growth of private credit assets under management in recent years has drawn increasing interest and scrutiny from investors. The scale of the expansion suggests a strong appetite among investors, but the lower liquidity and naturally opaque nature of private credit can make comparisons with public credit alternatives such as leveraged loans and high yield bonds difficult.
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White papersThe disintermediation of lending: Private debt shines bright
In the realm of alternative assets, private debt has emerged as shining star, experiencing a rapid evolution and now basking in what many are calling a golden moment. Amid rising interest rates, private debt has remained remarkably resilient, delivering robust returns, and attracting fervent investor interest. However, some questions are emerging about how resilient private debt will be in future as well as where the best opportunities now lie, particularly as syndicated loan and high-yield bond markets rally.
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White papersHigh yield floating rate notes: Prospects in the next stage of the cycle
Global high yield floating rate notes delivered strong returns in 2023 during a period of heightened macroeconomic uncertainty that included double digit inflation and interest rate hikes. With 2024 well underway, inflation is returning to target levels and the prospect of slower, yet positive, economic growth has encouraged a cautious sense of optimism that a soft landing may be achieved. Here, we explore the potential prospects for this growing subset of the high yield fixed income universe as we approach the next phase of the interest rate cycle.
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PodcastIs it Time for Fixed Income?
Global Head of Public Assets, Martin Horne, discusses the factors shaping the outlook for fixed income markets in 2024 including interest rates, corporate fundamentals and valuations.
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White papersA favourable starting point for Emerging Market debt?
A favourable global growth picture and potential interest rate cuts could be advantageous for emerging market bonds in 2024. However, given significant uncertainty and the potential for election-related volatility, we believe a selective approach is crucial in identifying attractive opportunities.
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White papersFixed Income Roadmap 2024
Given current yield levels, slowing growth, and continued disinflation, fixed income moves into the limelight, offering attractive prospects for investors. Our fixed income game plan visualises just where investors should be looking now.
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White papersClimate Change High Yield Credit, Annual Report 2023
This year’s annual report offers a deep dive into a newly augmented data tool that quantifies the progress companies have made towards decarbonisation.
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White papersFallen angels radar: positive 2024 supply dynamics
In this new quarterly publication, we monitor developments in the fallen-angels universe to find investment opportunities. Which corporate bond issues have lost their investment-grade (IG) rating to join the segment? How are corporate credit ratings progressing? What trends do we see emerging in credit quality?
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White papersHigh Yield: Can the Strength Continue?
Despite risks surrounding the direction of the global economy, high yield bonds and loans continue to offer attractive total return potential for long-term investors willing to look beyond the likelihood of near-term volatility.
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White papersTreasury yields mixed on strong economic data
U.S. Treasury yields were mixed last week and spread sectors outperformed as fourth quarter U.S. GDP exceeded expectations. The market continues to price in a 50% chance of a U.S. Federal Reserve rate cut by March, and around five total cuts for this year.
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White papersIt’s Time to Say Goodbye to ‘T-Bill and Chill’
Investors who wait too long to get off the sidelines may find they’ve missed out.
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White papersFixed Income Perspectives Q1 2024
Quarterly macro and market insights from Capital Group’s fixed income team
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White papersCorporate Credit Outlook 2024: High Tide for Yield?
Weakening economic fundamentals shouldn’t scare away corporate bond investors in 2024—provided they keep a close eye on credit quality.
